12/09/2024 | Press release | Distributed by Public on 12/09/2024 23:33
OLYMPIA -The Washington State Department of Financial Institutions (DFI) is issuing the first of a multi-phase report studying home equity sharing agreements (also known as HESAs) and other non-traditional financial products. The report reveals many similarities between HESA products and traditional loan products. The report is available on DFI's website.
Nine HESA providers responded to a request for information about their products including:
This Phase One study report is a result of Engrossed Substitute Senate Bill ESSB 5950, which appropriated funds to study HESAs. On May 1, 2024, DFI launched an inquiry into HESA products offered to Washington homeowners.
DFI continues to engage with HESA providers to find more information on industry practices and to monitor the industry's impact on Washington consumers. In addition, the DFI is working with the Evans School of Public Policy and Governance at the University of Washington on Phase Two of the study which will address how HESA products effect communities of color, seniors, and other vulnerable populations in Washington.